CATHAY GENERAL BANCORP LOS ANGELES, Jan. 25, 2017 /PRNewswire/ -- Cathay General Bancorp (the "Company", NASDAQ: CATY), the holding company for Cathay Bank, today announced net income of $48.0 million, or $0.60 per share, for the fourth quarter of 2016, and net income of $175.1 million, or $2.19 per share, for the year ended December 31, 2016.
FINANCIAL PERFORMANCE
Three months ended Year ended December 31,
------------------ -----------------------
December 31, 2016 September 30, 2016 December 31, 2015 2016 2015
----------------- ------------------ ----------------- ---- ----
Net income $48.0 million $46.1 million $41.4 million $175.1 million $161.1 million
Basic earnings per
common share $0.61 $0.58 $0.51 $2.21 $2.00
Diluted earnings
per common share $0.60 $0.58 $0.51 $2.19 $1.98
Return on average
assets 1.37% 1.38% 1.27% 1.31% 1.34%
Return on average
total
stockholders'
equity 10.52% 10.30% 9.40% 9.88% 9.52%
Efficiency ratio 45.39% 45.05% 49.22% 49.79% 49.15%
FULL YEAR HIGHLIGHTS
-- Diluted earnings per share increased 17.6% to $0.60 per share for the
fourth quarter of 2016 compared to $0.51 per share for the same quarter
a year ago.
-- Total loans increased $1.0 billion, or 10.2%, excluding loans held for
sale, during 2016, to $11.2 billion at December 31, 2016, compared to
$10.2 billion at December 31, 2015.
-- Total assets for the year increased $1.2 billion to $14.5 billion at
December 31, 2016 from $13.3 billion at December 31, 2015.
"In the fourth quarter of 2016, our gross loans, excluding loans held for sale, grew by $191 million to $11.2 billion. The loan growth for 2016 was $1.0 billion, representing an increase of 10.2% for the year. For the fourth quarter of 2016, our total deposits, increased $736 million to $11.7 billion compared to the third quarter. For 2016, total deposits grew by $1.2 billion representing an increase of 11.1% for the year. Also, in November 2016, we increased our dividend by 16.7% to $.21 per share from the $.18 per share paid previously," commented Pin Tai, Chief Executive Officer and President of the Company.
"The transaction to acquire Sinopac Bancorp, the parent of Far East National Bank, continues to progress and we expect it to be completed in the next several months," added Dunson Cheng, Executive Chairman of the Board of the Company.
FOURTH QUARTER INCOME STATEMENT REVIEW
Net income for the quarter ended December 31, 2016, was $48.0 million, an increase of $6.6 million, or 15.8%, compared to net income of $41.4 million for the same quarter a year ago. Diluted earnings per share for the quarter ended December 31, 2016, was $0.60 compared to $0.51 for the same quarter a year ago.
Return on average stockholders' equity was 10.52% and return on average assets was 1.37% for the quarter ended December 31, 2016, compared to a return on average stockholders' equity of 9.40% and a return on average assets of 1.27% for the same quarter a year ago.
Net interest income before provision for credit losses
Net interest income before provision for credit losses increased $10.5 million, or 10.5%, to $109.9 million during the fourth quarter of 2016 compared to $99.4 million during the same quarter a year ago. The increase was due primarily to an increase in interest income from loans, partially offset by an increase in interest expense from time and other deposits.
The net interest margin was 3.36% for the fourth quarter of 2016 compared to 3.30% for the fourth quarter of 2015 and 3.36% for the third quarter of 2016.
For the fourth quarter of 2016, the yield on average interest-earning assets was 4.00%, the cost of funds on average interest-bearing liabilities was 0.86%, and the cost of interest-bearing deposits was 0.69%. In comparison, for the fourth quarter of 2015, the yield on average interest-earning assets was 3.97%, the cost of funds on average interest-bearing liabilities was 0.89%, and the cost of interest-bearing deposits was 0.69%. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 3.14% for the quarter ended December 31, 2016, compared to 3.08% for the same quarter a year ago.
Reversal for credit losses
Reversal for credit losses was zero for the fourth quarter of 2016 compared to $3.0 million for the fourth quarter of 2015. The reversal for credit losses was based on a review of the appropriateness of the allowance for loan losses at December 31, 2016. A provision or reversal for credit losses represents a charge against or benefit toward current earnings that is determined by management, through a credit review process, as the amount needed to establish an allowance that management believes to be sufficient to absorb credit losses inherent in the Company's loan portfolio, including unfunded commitments. The following table summarizes the charge-offs and recoveries for the periods indicated:
Three months ended Year ended December 31,
------------------ -----------------------
December 31, 2016 September 30, 2016 December 31, 2015 2016 2015
----------------- ------------------ ----------------- ---- ----
(In thousands)
Charge-offs:
Commercial loans $920 $3,278 $9,672 $12,955 $16,426
Real estate loans
(1) 118 4,626 227 5,948 4,001
----- ----- -----
Total charge-offs 1,038 7,904 9,899 18,903 20,427
----- ----- ----- ------ ------
Recoveries:
Commercial loans $424 2,006 1,534 4,144 4,618
Construction loans 46 548 39 7,917 202
Real estate
loans(1) 1,592 343 213 2,495 4,549
----- --- --- ----- -----
Total recoveries 2,062 2,897 1,786 14,556 9,369
Net charge-offs $(1,024) $5,007 $8,113 $4,347 $11,058
======= ====== ====== ====== =======
(1) Real estate loans include
commercial mortgage loans,
residential mortgage loans,
and equity lines.
Non-interest income
Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), gains (losses) on loan sales, wire transfer fees, and other sources of fee income, was $8.0 million for the fourth quarter of 2016, a decrease of $1.4 million, or 14.9%, compared to $9.4 million for the fourth quarter of 2015.
Non-interest expense
Non-interest expense remained unchanged at $53.5 million in the fourth quarter of 2016 when compared to 2015. For the fourth quarter of 2016, amortization of investments in affordable housing and alternative energy partnerships decreased $5.4 million offset by a $3.9 million increase in salary and employee benefit expenses and a $1.0 million accrual for the reserve for off balance sheet commitments when compared to the same quarter a year ago. The efficiency ratio was 45.39% in the fourth quarter of 2016 compared to 49.22% for the same quarter a year ago.
Income taxes
The effective tax rate for the fourth quarter of 2016 was 25.4% compared to 28.8% for the fourth quarter of 2015. The effective tax rate includes the impact of the utilization of low income housing tax credits and alternative energy tax credits. Income tax expense for the fourth quarter of 2016 was reduced by $0.7 million in benefits from the exercise of stock options.
BALANCE SHEET REVIEW
Gross loans, excluding loans held for sale, were $11.2 billion at December 31, 2016, an increase of $1.0 billion, or 10.2%, from $10.2 billion at December 31, 2015, primarily due to increases of $511.7 million, or 26.5%, in residential mortgage loans, $484.0 million, or 9.1%, in commercial mortgage loans, and $106.5 million, or 24.1%, in real estate construction loans partially offset by decreases of $68.7 million, or 3.0%, in commercial loans. The loan balances and composition at December 31, 2016, compared to September 30, 2016, and to December 31, 2015, are presented below:
December 31, 2016 September 30, 2016 December 31, 2015
----------------- ------------------ -----------------
(In thousands)
Commercial
loans $2,248,187 $2,248,996 $2,316,863
Residential
mortgage
loans 2,444,048 2,329,402 1,932,355
Commercial
mortgage
loans 5,785,248 5,743,991 5,301,218
Equity lines 171,711 170,022 168,980
Real estate
construction
loans 548,088 515,236 441,543
Installment
& other
loans 3,993 2,810 2,493
Gross loans $11,201,275 $11,010,457 $10,163,452
Allowance
for loan
losses (118,966) (117,942) (138,963)
Unamortized
deferred
loan fees (4,994) (5,519) (8,262)
------ ------ ------
Total loans,
net $11,077,315 $10,886,996 $10,016,227
----------- ----------- -----------
Loans held
for sale $7,500 $4,750 $6,676
------ ------ ------
Total deposits were $11.7 billion at December 31, 2016, an increase of $736 million, or 6.7%, from $10.9 billion at September 30, 2016, and an increase of $1.2 billion, or 11.1% from $10.5 billion at December 31, 2015. The deposit balances and composition at December 31, 2016, compared to September 30, 2016, and to December 31, 2015, are presented below:
December 31, 2016 September 30, 2016 December 31, 2015
----------------- ------------------ -----------------
(In thousands)
Non-
interest-
bearing
demand
deposits $2,478,107 $2,246,661 $2,033,048
NOW
deposits 1,230,445 1,073,436 966,404
Money
market
deposits 2,198,938 2,131,190 1,905,719
Savings
deposits 719,949 633,345 618,164
Time
deposits 5,047,287 4,854,064 4,985,752
--------- --------- ---------
Total
deposits $11,674,726 $10,938,696 $10,509,087
=========== =========== ===========
ASSET QUALITY REVIEW
At December 31, 2016, total non-accrual loans were $49.7 million, an increase of $5.3 million, or 12.0%, from $44.4 million at September 30, 2016, and a decrease of $2.4 million, or 4.7%, from $52.1 million at December 31, 2015.
The allowance for loan losses was $119.0 million and the allowance for off-balance sheet unfunded credit commitments was $3.2 million at December 31, 2016, which represented the amount believed by management to be appropriate to absorb credit losses inherent in the loan portfolio, including unfunded commitments. The $119.0 million allowance for loan losses at December 31, 2016, decreased $20.0 million, or 14.4%, from $139.0 million at December 31, 2015. The allowance for loan losses represented 1.06% of period-end gross loans, excluding loans held for sale, and 239.5% of non-performing loans at December 31, 2016. The comparable ratios were 1.37% of period-end gross loans, excluding loans held for sale, and 266.6% of non-performing loans at December 31, 2015. The changes in non-performing assets and troubled debt restructurings at December 31, 2016, compared to December 31, 2015, and to September 30, 2016, are highlighted below:
(Dollars in thousands) December 31, 2016 December 31, 2015 % Change September 30, 2016 % Change
--------------------- ----------------- ----------------- -------- ------------------ --------
Non-performing assets
Accruing loans past due 90 days or more $ - $ - - $ - -
Non-accrual loans:
Construction loans 5,458 16,306 (67) 5,507 (1)
Commercial mortgage loans 20,078 25,231 (20) 21,077 (5)
Commercial loans 15,710 3,545 343 9,251 70
Residential mortgage loans 8,436 7,048 20 8,524 (1)
----- ----- -----
Total non-accrual loans: $49,682 $52,130 (5) $44,359 12
------- ------- -------
Total non-performing loans 49,682 52,130 (5) 44,359 12
Other real estate owned 20,070 24,701 (19) 20,986 (4)
Total non-performing assets $69,752 $76,831 (9) $65,345 7
------- ------- -------
Accruing troubled debt restructurings
(TDRs) $65,393 $81,680 (20) $86,555 (24)
Non-accrual loans held for sale $7,500 $6,676 12 $4,750 58
Allowance for loan losses $118,966 $138,963 (14) $117,942 1
Total gross loans outstanding, at period-
end (1) $11,201,275 $10,163,452 10 $11,010,457 2
Allowance for loan losses to non-
performing loans, at period-end (2) 239.45% 266.57% 265.88%
Allowance for loan losses to gross loans,
at period-end (1) 1.06% 1.37% 1.07%
(1) Excludes loans held
for sale at period-end.
(2) Excludes non-accrual
loans held for sale at
period-end.
Troubled debt restructurings on accrual status totaled $65.4 million at December 31, 2016, compared to $81.7 million at December 31, 2015. These loans are classified as troubled debt restructurings as a result of granting a concession to borrowers. Although these loan modifications are considered troubled debt restructurings under Accounting Standard Codification 310-40 and Accounting Standard Update 2011-02, these loans have demonstrated sustained performance under the modified terms. The sustained performance considered by management includes the periods prior to the modification if the prior performance met or exceeded the modified terms as well as cash paid to set up interest reserves.
The ratio of non-performing assets, excluding non-accrual loans held for sale, to total assets was 0.5% at December 31, 2016, compared to 0.6% at December 31, 2015. Total non-performing assets decreased $7.0 million, or 9.2%, to $69.8 million at December 31, 2016, compared to $76.8 million at December 31, 2015, primarily due to a decrease of $2.4 million, or 4.7%, in non-accrual loans and a decrease of $4.6 million, or 18.7%, in other real estate owned.
CAPITAL ADEQUACY REVIEW
At December 31, 2016, the Company's common equity Tier 1 capital ratio of 12.84%, Tier 1 risk-based capital ratio of 13.85%, total risk-based capital ratio of 14.97%, and Tier 1 leverage capital ratio of 11.57%, calculated under the Basel III capital rules, continue to place the Company in the "well capitalized" category for regulatory purposes, which is defined as institutions with a common equity tier 1 capital ratio equal to or greater than 6.5%, a Tier 1 risk-based capital ratio equal to or greater than 8%, a total risk-based capital ratio equal to or greater than 10%, and a Tier 1 leverage capital ratio equal to or greater than 5%. At December 31, 2015, the Company's common equity Tier 1 capital ratio was 12.95%, Tier 1 risk-based capital ratio was 14.03%, total risk-based capital ratio was 15.30%, and Tier 1 leverage capital ratio was 11.95%.
FULL YEAR REVIEW
Net income for the year ended December 31, 2016, was $175.1 million, an increase of $14.0 million, or 8.7%, compared to net income of $161.1 million for the year ended December 31, 2015. Diluted earnings per share for the year ended December 31, 2016 was $2.19 compared to $1.98 for the year ended December 31, 2015. The net interest margin for the year ended December 31, 2016, was 3.38% compared to 3.39% for the year ended December 31, 2015.
Return on average stockholders' equity was 9.88% and return on average assets was 1.31% for the year ended December 31, 2016, compared to a return on average stockholders' equity of 9.52% and a return on average assets of 1.34% for the year ended December 31, 2015. The efficiency ratio for the year ended December 31, 2016, was 49.79% compared to 49.15% for year ended December 31, 2015.
CONFERENCE CALL
Cathay General Bancorp will host a conference call this afternoon to discuss its fourth quarter and year end 2016 financial results. The call will begin at 3:00 p.m., Pacific Time. Analysts and investors may dial in and participate in the question-and-answer session. To access the call, please dial 1-855-761-3186 and enter Conference ID 48409980. A listen-only live Webcast of the call will be available at www.cathaygeneralbancorp.com and a recorded version is scheduled to be available for replay for 12 months after the call.
ABOUT CATHAY GENERAL BANCORP
Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 34 branches in California, 12 branches in New York State, three in the Chicago, Illinois area, three in Washington State, two in Texas, one in Maryland, one in Massachusetts, one in Nevada, one in New Jersey, one in Hong Kong, and a representative office in Shanghai and in Taipei. Cathay Bank's website is found at http://www.cathaybank.com. Cathay General Bancorp's website is found at http://www.cathaygeneralbancorp.com. Information set forth on such websites is not incorporated into this press release.
FORWARD-LOOKING STATEMENTS
Statements made in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management's beliefs, projections, and assumptions concerning future results and events. These forward-looking statements may include, but are not limited to, such words as "aims," "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "hopes," "intends," "may," "plans," "projects," "predicts," "potential," "possible," "optimistic," "seeks," "shall," "should," "will," and variations of these words and similar expressions. Forward-looking statements are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from U.S. and international business and economic conditions; possible additional provisions for loan losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to including potential future supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; higher capital requirements from the implementation of the Basel III capital standards; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; natural disasters and geopolitical events; general economic or business conditions in Asia, and other regions where Cathay Bank has operations; failures, interruptions, or security breaches of our information systems; our ability to adapt our systems to technological changes; risk management processes and strategies; adverse results in legal proceedings; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in accounting standards or tax laws and regulations; market disruption and volatility; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuance of preferred stock; successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our pending acquisition of SinoPac Bancorp, including the possibility that any of the anticipated benefits of the proposed acquisition will not be realized or will not be realized within the expected time period; the failure to satisfy conditions to completion of the proposed acquisition or the merger of Cathay Bank and Far East National Bank, including receipt of required regulatory approvals; the failure of the proposed acquisition or the merger of Cathay Bank and Far East National Bank to be completed for any reason; the inability to complete the proposed acquisition or the merger of Cathay Bank and Far East National Bank in a timely manner; the risk that integration of SinoPac Bancorp's and Far East National Bank's operations with those of the Company and Cathay Bank will be materially delayed or will be more costly or difficult than expected; the diversion of management's attention from ongoing business operations and opportunities; the challenges of integrating and retaining key employees; the effect of the announcement of the proposed acquisition on the Company's, SinoPac Bancorp's, Far East National Bank's or the combined companies' respective customer relationships and operating results; the possibility that the proposed acquisition may be more expensive to complete than anticipated, including as a result of unexpected factors or events; and general competitive, economic political, and market conditions and fluctuations.
These and other factors are further described in Cathay General Bancorp's Annual Report on Form 10-K for the year ended December 31, 2015 (Item 1A in particular), other reports filed with the Securities and Exchange Commission ("SEC"), and other filings Cathay General Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this press release. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements, which speak to the date of this press release. Cathay General Bancorp has no intention and undertakes no obligation to update any forward-looking statement or to publicly announce any revision of any forward-looking statement to reflect future developments or events, except as required by law.
CATHAY GENERAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
Three months ended Year ended December 31,
------------------ -----------------------
(Dollars in thousands, except per
share data) December 31, 2016 September 30, 2016 December 31, 2015 2016 2015
--------------------------------- ----------------- ------------------ ----------------- ---- ----
FINANCIAL PERFORMANCE
Net interest income before provision
for credit losses $109,902 $103,824 $99,416 $417,870 $379,742
Reversal for credit losses - - (3,000) (15,650) (11,400)
--- --- ------ ------- -------
Net interest income after reversal
for credit losses 109,902 103,824 102,416 433,520 391,142
Non-interest income 7,961 8,811 9,350 33,370 32,674
Non-interest expense 53,503 50,737 53,533 224,690 202,720
------ ------ ------ ------- -------
Income before income tax expense 64,360 61,898 58,233 242,200 221,096
Income tax expense 16,345 15,808 16,787 67,101 59,987
------ ------ ------ ------ ------
Net income $48,015 $46,090 $41,446 175,099 161,109
======= ======= ======= ======= =======
Net income per common share
Basic $0.60 $0.58 $0.51 $2.21 $2.00
Diluted $0.60 $0.58 $0.51 $2.19 $1.98
Cash dividends paid per common share $0.21 $0.18 $0.18 $0.75 $0.56
SELECTED RATIOS
Return on average assets 1.37% 1.38% 1.27% 1.31% 1.34%
Return on average total
stockholders' equity 10.52% 10.30% 9.40% 9.88% 9.52%
Efficiency ratio 45.39% 45.05% 49.22% 49.79% 49.15%
Dividend payout ratio 34.79% 30.80% 35.21% 33.85% 28.11%
YIELD ANALYSIS (Fully taxable
equivalent)
Total interest-earning assets 4.00% 4.02% 3.97% 4.04% 4.06%
Total interest-bearing liabilities 0.86% 0.89% 0.89% 0.88% 0.88%
Net interest spread 3.14% 3.13% 3.08% 3.16% 3.18%
Net interest margin 3.36% 3.36% 3.30% 3.38% 3.39%
CAPITAL RATIOS December 31, 2016 September 30, 2016 December 31, 2015
----------------- ------------------ -----------------
Common Equity Tier 1 capital ratio 12.84% 12.64% 12.95%
Tier 1 risk-based capital ratio 13.85% 13.67% 14.03%
Total risk-based capital ratio 14.97% 14.78% 15.30%
Tier 1 leverage capital ratio 11.57% 11.91% 11.95%
.
===
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data) December 31, 2016 September 30, 2016 December 31, 2015
---------------------------------------------- ----------------- ------------------ -----------------
Assets
Cash and due from banks $218,017 $203,877 $180,130
Short-term investments and interest bearing deposits 967,067 791,757 536,880
Securities available-for-sale (amortized cost of
$1,317,012 at December 31, 2016, 1,314,345 1,298,469 1,586,352
$1,283,808 at September 30, 2016, and $1,595,723 at December 31, 2015)
Loans held for sale 7,500 4,750 6,676
Loans 11,201,275 11,010,457 10,163,452
Less: Allowance for loan losses (118,966) (117,942) (138,963)
Unamortized deferred loan fees, net (4,994) (5,519) (8,262)
------ ------ ------
Loans, net 11,077,315 10,886,996 10,016,227
Federal Home Loan Bank stock 17,250 18,900 17,250
Other real estate owned, net 20,070 20,986 24,701
Affordable housing investments and alternative energy
partnerships, net 251,077 225,535 182,943
Premises and equipment, net 105,607 106,885 108,924
Customers' liability on acceptances 12,182 13,339 40,335
Accrued interest receivable 37,299 31,868 30,558
Goodwill 372,189 372,189 372,189
Other intangible assets, net 2,949 3,158 3,677
Other assets 117,902 120,080 147,284
Total assets $14,520,769 $14,098,789 $13,254,126
=========== =========== ===========
Liabilities and Stockholders' Equity
Deposits
Non-interest-bearing demand deposits $2,478,107 $2,246,661 $2,033,048
Interest-bearing deposits:
NOW deposits 1,230,445 1,073,436 966,404
Money market deposits 2,198,938 2,131,190 1,905,719
Savings deposits 719,949 633,345 618,164
Time deposits 5,047,287 4,854,064 4,985,752
--------- --------- ---------
Total deposits 11,674,726 10,938,696 10,509,087
---------- ---------- ----------
Securities sold under agreements to repurchase 350,000 350,000 400,000
Advances from the Federal Home Loan Bank 350,000 700,000 275,000
Other borrowings for affordable housing investments 17,662 17,705 18,593
Long-term debt 119,136 119,136 119,136
Acceptances outstanding 12,182 13,339 40,335
Other liabilities 168,524 166,474 144,197
------- ------- -------
Total liabilities 12,692,230 12,305,350 11,506,348
---------- ---------- ----------
Commitments and contingencies - - -
--- --- ---
Stockholders' Equity
Common stock, $0.01 par value, 100,000,000 shares
authorized,
87,820,920 issued and 79,610,277 outstanding at
December 31, 2016,
87,090,319 issued and 78,879,676
outstanding at September 30, 2016, and
878 871 870
87,002,931 issued and 80,806,116 outstanding at December 31,
2015
Additional paid-in-capital 895,480 886,081 880,822
Accumulated other comprehensive income/(loss), net (3,715) 1,903 (8,426)
Retained earnings 1,175,485 1,144,173 1,059,660
Treasury stock, at cost (8,210,643 shares at December 31,
2016, (239,589) (239,589) (185,148)
8,210,643 at September 30, 2016, and 6,196,815 at December
31, 2015)
Total equity 1,828,539 1,793,439 1,747,778
--------- --------- ---------
Total liabilities and equity $14,520,769 $14,098,789 $13,254,126
=========== =========== ===========
Book value per common share $22.80 $22.57 $21.46
Number of common shares outstanding 79,610,277 78,879,676 80,806,116
CATHAY GENERAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Year ended December 31,
------------------ -----------------------
December 31, 2016 September 30, 2016 December 31, 2015 2016 2015
----------------- ------------------ ----------------- ---- ----
(In thousands, except share and per share data)
INTEREST AND DIVIDEND
INCOME
Loan receivable, including
loan fees $124,570 $118,500 $112,583 $473,782 $427,621
Investment securities 4,452 4,850 6,261 21,426 21,523
Federal Home Loan Bank
stock 977 393 382 2,099 3,164
Deposits with banks 669 412 293 1,763 1,398
Total interest and dividend
income 130,668 124,155 119,519 499,070 453,706
------- ------- ------- ------- -------
INTEREST EXPENSE
Time deposits 11,150 10,701 11,122 43,327 39,443
Other deposits 4,311 4,212 3,435 16,094 12,445
Securities sold under
agreements to repurchase 3,633 3,828 3,977 15,329 15,813
Advances from Federal Home
Loan Bank 217 134 113 659 487
Long-term debt 1,455 1,456 1,456 5,791 5,776
Total interest expense 20,766 20,331 20,103 81,200 73,964
------ ------ ------ ------ ------
Net interest income before
reversal for credit losses 109,902 103,824 99,416 417,870 379,742
Reversal for credit losses - - (3,000) (15,650) (11,400)
Net interest income after
reversal for credit losses 109,902 103,824 102,416 433,520 391,142
------- ------- ------- ------- -------
NON-INTEREST INCOME
Securities gains/(losses),
net 1,757 1,692 20 4,898 (3,349)
Letters of credit
commissions 1,241 1,212 1,431 4,939 5,545
Depository service fees 1,369 1,401 1,345 5,478 5,348
Other operating income 3,594 4,506 6,554 18,055 25,130
Total non-interest income 7,961 8,811 9,350 33,370 32,674
----- ----- ----- ------ ------
NON-INTEREST EXPENSE
Salaries and employee
benefits 26,035 22,881 22,156 97,348 89,960
Occupancy expense 4,728 4,734 4,599 18,315 17,018
Computer and equipment
expense 2,417 2,337 2,513 9,777 9,828
Professional services
expense 4,705 4,999 4,440 18,686 17,316
Data processing service
expense 2,401 2,279 1,876 8,957 7,698
FDIC and State assessments 2,072 2,288 2,180 9,712 9,087
Marketing expense 1,778 1,516 1,349 5,092 4,926
Other real estate owned
expense/(income) 244 (176) 253 856 (800)
Amortization of investments
in low income housing and
alternative energy
partnerships 4,638 5,432 10,058 40,264 33,335
Amortization of core
deposit intangibles 172 172 174 689 667
Other operating expense 4,313 4,275 3,935 14,994 13,685
Total non-interest expense 53,503 50,737 53,533 224,690 202,720
------ ------ ------ ------- -------
Income before income tax
expense 64,360 61,898 58,233 242,200 221,096
Income tax expense 16,345 15,808 16,787 67,101 59,987
------ ------ ------ ------ ------
Net income $48,015 $46,090 $41,446 175,099 161,109
======= ======= ======= ======= =======
Net income per common
share:
Basic $0.61 $0.58 $0.51 $2.21 $2.00
Diluted $0.60 $0.58 $0.51 $2.19 $1.98
Cash dividends paid per
common share $0.21 $0.18 $0.18 $0.75 $0.56
Basic average common shares
outstanding 79,171,401 78,865,860 80,981,582 79,153,762 80,563,577
Diluted average common
shares outstanding 80,007,934 79,697,069 81,857,429 79,929,262 81,294,796
CATHAY GENERAL BANCORP
AVERAGE BALANCES - SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
Three months ended
------------------
(In thousands) December 31, 2016 September 30, 2016 December 31, 2015
------------- ----------------- ------------------ -----------------
Interest-earning
assets Average Balance Average Average Balance Average Average Balance Average
Yield/Rate (1) Yield/Rate (1) Yield/Rate (1)
--- ---
Loans (1) $11,080,313 4.47% $10,670,253 4.42% $10,091,207 4.43%
Taxable investment
securities 1,339,848 1.32% 1,303,598 1.48% 1,499,861 1.66%
FHLB stock 18,290 21.25% 17,268 9.05% 17,250 8.79%
Deposits with banks 560,896 0.47% 294,292 0.56% 327,948 0.35%
Total interest-
earning assets $12,999,347 4.00% $12,285,411 4.02% $11,936,266 3.97%
----------- ----------- -----------
Interest-bearing liabilities
Interest-bearing
demand deposits $1,144,082 0.17% $1,060,065 0.17% $924,423 0.16%
Money market
deposits 2,176,268 0.65% 2,117,831 0.66% 1,802,341 0.62%
Savings deposits 666,867 0.17% 627,912 0.16% 615,778 0.16%
Time deposits 4,982,911 0.89% 4,651,593 0.92% 5,067,000 0.87%
--------- --------- ---------
Total interest-
bearing deposits $8,970,128 0.69% $8,457,401 0.70% $8,409,542 0.69%
Securities sold
under agreements to
repurchase 350,000 4.13% 378,261 4.03% 400,000 3.94%
Other borrowed funds 148,675 0.58% 107,203 0.50% 67,609 0.66%
Long-term debt 119,136 4.86% 119,136 4.86% 119,136 4.85%
------- ---- ------- ---- ------- ----
Total interest-
bearing liabilities 9,587,939 0.86% 9,062,001 0.89% 8,996,287 0.89%
Non-interest-
bearing demand
deposits 2,400,404 2,254,123 1,993,135
Total deposits and
other borrowed
funds $11,988,343 $11,316,124 $10,989,422
----------- ----------- -----------
Total average assets $13,992,093 $13,263,385 $12,919,839
Total average equity $1,814,981 $1,779,852 $1,748,825
Year ended,
-----------
(In thousands) December 31, 2016 December 31, 2015
------------- ----------------- -----------------
Interest-earning
assets Average Balance Average Average Balance Average
Yield/Rate (1) Yield/Rate (1)
---
Loans (1) $10,622,160 4.46% $9,593,448 4.46%
Taxable investment
securities 1,372,916 1.56% 1,378,641 1.56%
FHLB stock 17,516 11.98% 21,480 14.73%
Deposits with banks 345,136 0.51% 192,763 0.73%
Total interest-
earning assets $12,357,728 4.04% $11,186,332 4.06%
----------- -----------
Interest-bearing liabilities
Interest-bearing
demand deposits $1,046,046 0.17% $860,513 0.16%
Money market
deposits 2,059,823 0.65% 1,677,065 0.60%
Savings deposits 636,422 0.16% 590,987 0.15%
Time deposits 4,810,746 0.90% 4,673,862 0.84%
--------- ---------
Total interest-
bearing deposits $8,553,037 0.69% $7,802,427 0.67%
Securities sold
under agreements to
repurchase 381,967 4.01% 400,822 3.95%
Other borrowed funds 126,720 0.52% 105,367 0.46%
Long-term debt 119,136 4.86% 119,136 4.85%
------- ---- ------- ----
Total interest-
bearing liabilities 9,180,860 0.88% 8,427,752 0.88%
Non-interest-
bearing demand
deposits 2,199,274 1,781,981
Total deposits and
other borrowed
funds $11,380,134 $10,209,733
----------- -----------
Total average assets $13,331,148 $12,056,531
Total average equity $1,772,017 $1,692,826
(1) Yields and interest earned include
net loan fees. Non-accrual loans are
included in the average balance.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cathay-general-bancorp-announces-fourth-quarter-and-full-year-2016-results-300396800.html
SOURCE Cathay General Bancorp
